As part of its acquisition-driven growth strategy, Terreno Realty TRNO recently announced the acquisition of an industrial property in Redmond, WA, for $9.3 million. The transaction marks an estimated stabilized cap rate after renovation of 5.5%.
Located at 9660 153rd Avenue NE on Seattle’s Eastside, the property comprises one industrial distribution building containing roughly 33,000 square feet on 1.5 acres. While the property is fully leased on a short-term basis, it will undergo renovation after the existing tenant vacates and will then contain roughly 26,000 square feet of space. With an advantageous location, the property is likely to lure tenants, and its acquisition seems a strategic fit.
TRNO has been actively restructuring its portfolio by disposing of non-core assets and acquiring value-accretive investments. Such efforts will aid long-term revenue growth. In the first quarter of 2025, Terreno Realty sold two properties with two industrial distribution buildings spanning around 88,000 square feet at an aggregate sale value of around $24.9 million. As of March 31, 2025, TRNO had acquisitions worth around $55.9 million under contract and nearly $16 million under letters of intent.
Moreover, as of March 31, 2025, Terreno had five properties under development or redevelopment. Post completion, these will comprise eight buildings spanning around 0.8 million square feet, which are 48% pre-leased. The company also has around 22.4 acres of land dedicated to future developments at an estimated investment value of around $392.8 million.
With such expansion efforts, Terreno Realty is well-poised to enhance its portfolio in six major coastal U.S. markets, namely New York City/Northern New Jersey, Los Angeles, Miami, San Francisco Bay Area, Seattle and Washington, D.C. These markets display solid demographic trends and witness healthy demand for industrial real estate. However, reflecting concerns over macroeconomic uncertainty and tariff woes, shares of this Zacks Rank #3 (Hold) company have declined 8.8% so far in the year, wider than its industry’s fall of 4.7%.
Image Source: Zacks Investment ResearchStocks to Consider
Some better-ranked stocks from the broader REIT sector are Welltower Inc. WELL and Cousins Properties Incorporated CUZ. Welltower and Cousins Properties carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Welltower’s 2025 FFO per share is pegged at $4.95, which indicates year-over-year growth of 14.6%.
The Zacks Consensus Estimate for Cousins’ 2025 FFO per share is pegged at $2.79, which implies a year-over-year increase of 3.7%.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
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Cousins Properties Incorporated (CUZ): Free Stock Analysis Report Terreno Realty Corporation (TRNO): Free Stock Analysis Report Welltower Inc. (WELL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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